Monday, April 16, 2007

ChoiceStream and Personalized Internet

Before I start writing about music industry-related subject matter, I want to take a little time to pray for those people affected by the unthinkable killings that occurred on the Virgina Tech campus today in Blacksburg. This is a stark reminder of how prevalent senseless violence is in our world. Though this is an unnecessary tragedy, this happens every day. Think about Iraq and every corner of the globe where innocent people deal with widespread death on a daily basis. Now think about how many experiences you have with murder. Correct me if I'm wrong but the majority of us Americans, assuming you haven't served in a war or police department, do not deal with this regularly. Take some time to realize that everything we have, everything we've all worked for can be gone in a single second, with one squeeze of the trigger or one slip down the stairs. We truly are blessed to be alive. Think about those who may not be so lucky, who may not have as many conveniences as we do. Life is a gift! Send some love to those you care about!

Now, on to the news!

Almost every day there are new happenings that suggest the world is ready to firmly set foot in the digital empire. CD sales are dropping, record labels are losing money and struggling to adapt, etc. You know the drill. What is the latest development? Well, it may not be huge, but it is something. ChoiceStream has recently received $25.79 million in investment money, following an earlier $13.1 million check, according to Digital Music News.

What is ChoiceStream? Why does this matter? Why should I care?

ChoiceStream is a Cambridge, Massachusetts based company that caters to online service companies. They provide personalization features on websites, especially online stores. For instance, look at Amazon or Overstock.com. You will notice at least one recommendation feature, especially if you are logged into the site as a member. This exists even upon visiting the site for the first time. These "recommendations" can be similar products based on what you have previously purchased, or other products that people who have purchased a product you have also purchased have ordered. That was a mouthful. Or, eyeful. Sorry. The bottom line is that it is, sometimes in a creepy way, personalized to you, tailored to you by your shopping habits and your personal information. Big Brother is watching you! Or, is he watching out for you? Apparently, people (and companies) with money have been noticing the positive effects that this can have on customers. They are excited about it and investing money into developing this. While it may seem like certain websites may be infringing too much on your sensitive personal information, the service has not been shunned by online shoppers (if it had, firms would not be investing millions of dollars into ChoiceStream and other personalization companies).

This is all well and good for your run-of-the-mill Wal-Mart type online stores, but what about the music, man?! Oh, it's there too. One such digital venue this can be found is on the ever present iTunes music store. If you have ever purchased music from the service, there will undoubtedly be a "For You" section, based on similar artists. Along the same lines, when browsing music on iTunes there is a section off to the side that is titled "Listeners Also Bought" that lists albums from similar sounding artists. While just browsing for music, possibly looking to buy music from an unknown (to you) artist, this can be an extremely helpful tool. I actually utilized this not 20 minutes ago. While searching for certain music (the new Norah Jones) to buy with a newly acquired gift card, I decided to check out other artists using this feature. It led me to put several albums into my "shopping cart," notably the bands Great Lake Swimmers, Explosions In The Sky, and This Will Destroy You. Interesting that their names are similarly atypical...Regardless, I will probably buy a few albums from such bands whom I have had no previous contact with, namely due to the personalized recommendation feature.

Outside of iTunes and online stores, this comes in the form of social music networks like Last.fm and Pandora, to name the most prominent. These websites, as discussed in previous posts, create personal online radio stations and introduce users to new music. Very, very hip. In my opinion, that is.

This all may be applicable only to the "young folks" that are as attached to their computers as politicians are to their lies, but it may in fact be transcending generations. While physical music sales across the world are slipping; the Australian Recording Industry Association recently released figures for 2006 sales, confirming a 3% decline in revenue; digital sales are soaring, if not at least holding ground, which is much better than CDs can say (if they could talk). More and more music connoisseurs are looking to the Internet to purchase their music, including older generations. My father is one of those. Belonging to the Baby Boomers generation, he is and has always been an avid music collector and lover. His cassette, LP, and CD collection is both voluminous and varied. With the advent of file-sharing and online sales, however, he has become a hybrid buyer. He still purchases CDs, but frequents iTunes does not hesitate to use the gift cards his wonderful children buy him for his birthday. This type of consumer may be an exception within an older generation, but it seems that humans of almost all ages are spending more time on the Internet, especially to find music.

The Internet is becoming, nay, has become an integral part in the lives of Americans and citizens of other developed countries. With new developments like ChoiceStream's personalization programs not just for music but for all forms of media, the connected world is in full transition. Just like the music recording industry's transition from analogue to digital, with this change brings good and bad. The pros and cons can not be standardized at this point, but one thing is for sure: We've got options. Variety. Everything is at our fingertips, and it is amazing.

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